%Set parameters
lambda.US = parameters(1);
eta.US = parameters(2);
mu.OECD = parameters(3);
import_tariff.US = parameters(4);
import_tariff.OECD = parameters(4);
beta.US = 1;
beta.OECD = 1;
theta.US=parameters(5);
theta.OECD=parameters(5);
kappa = parameters(6);
population_growth = 0.987;
%%% NOTE THE INNOVATION RATES ARE CONDITIONAL RATES BASED ON A SEQUENCE OF
%%% INNOVATORS, WITH US INCUMBENTS, THEN US INCUMBENTS, THEN US ENTRANTS,
%%% THEN OECD INCUMBENTS, THEN OECD ENTRANTS EACH RECEIVING A DRAW IN THAT
%%% ORDER. WE DO NOT SEPARATELY IDENTIFY INCUMBENT VERSUS ENTRANT ARRIVAL
%%% RATES FOR THE OECD, SO THE SPLIT BELOW IS ARBITRARY AND INCONSEQUENTIAL
%%% TO ALL THE RESULTS IN THE PAPER. 
eta.OECD = 0.23*mu.OECD;
lambda.OECD = 0.77*mu.OECD;
l.US = 1;
l.OECD = 2.57;
n_varieties = 5000;
max_year = 400;
r = 0.05;
varieties_vec = [1:n_varieties]';
innovation_mode = 'partialspillover';
group_size = {40, 40};
